Small Business Quiz 1

Motivation alone is generally enough to increase productivity.

False

Staffing involves compensating employees and providing for their health and safety.

True

Watching people is a useful marketing research technique.

True

Proficiency tests are used to assess if a candidate is able to meet minimum standards of mental alertness.

False

Right-to-work laws define the areas in which an employer has the right to act freely as an employer without interference from the union

False

Small business owners should not disclose their reasons for being in business with their employees to maintain good human relations.

False

Small businesses should carry out primary market research on their own instead of hiring experts to do it.

False

The four variables of a marketing mix are—customer, company, competition, and constraints.

False

The marketing concept is opposed to the systems approach in managing a business.

False

The marketing concept states that a firm must put consumer needs first, even if it means foregoing satisfactory profits.

False

The process of communication can be assumed to have occurred if the receiver decodes or retranslates the idea that is being communicated.

False

Very small businesses always use specialization, whereby employees do the work they are best suited for.

False

Web-based research is not an effective method in marketing research.

False

When owners delegate authority to workers to perform certain duties, they should relinquish their responsibility for seeing that those duties are performed.

False

When people buy something, there is no sense of satisfaction in the purchase made or in the goods and services provided to them.

False

Which of the following is the first step in the creative selling process?

Preparation

_____ play an important role in shipping because of their flexibility in operation and the improved highway systems.

Trucks

A target market is a part of the total market toward which promotional efforts are concentrated.

True

An informal organization always exists within the formal structure of a business.

True

An organization chart shows the authority and responsibility relationships that exist in a business.

True

Businesses in the United States may have to rehire retirees as consultants because the number of young adults is declining.

True

Communication is the transfer of meaning from one person to another.

True

Employee performance is a product of an employee's ability to do the job and the application of positive motivation.

True

Job enrichment emphasizes giving employees greater responsibility and authority over their jobs as the best way to motivate them.

True

Leadership is the ability to influence others to strive to attain goals or objectives.

True

Linda, a customer service agent at Dowling Manufacturers Inc., was moved from the home appliances department to the fashion apparel department. Her job title and pay remained the same. This is an example of transferring.

True

Managers are always motivating employees—either positively or negatively—even when they are not conscious of doing so.

True

Most small firms have minimized the use of preemployment tests because of the legal hassles.

True

Quality circles (QCs) are small, organized work groups that meet periodically to find ways to improve quality and output.

True

Reaching out to attract a supply of potential employees is known as recruitment

True

Small firms generally should not attempt to be price leaders.

True

Specialization is using employees to do the work that they are best suited for.

True

Stress usually begins when individuals are placed in a work environment that is incompatible with their professional work style and/or temperament.

True

The main advantages of on-the-job training are that it results in low out-of-pocket costs and production continues during the training.

True

The marketing concept emphasizes that the survival of any business depends on providing service to customers.

True

The most universal form of employee development is on-the-job training or on-the-job learning.

True

The selection procedure involves orienting the new employee

True

When selecting human resources, it helps to bring present employees into the process—in an advisory capacity.

True

With each delegation, the authority needed to carry out a task must be awarded.

True

With the shortage of skilled job applicants some small businesses are turning to cross-training to make their employees more versatile and keep them more satisfied.

True

A _____ brings a buyer and seller of a particular good together but does not take actual possession of the goods

broker

Marketing objectives need not be tied in with a business's competitive edge.

False

Marketing research cannot be done by using customer credit records and sales records since they are not helpful in yielding any information.

False

_____ are marketing intermediaries who market a product to others for a fee

Agents

_____ are marketing intermediaries who market a product to others for a fee.

Agents

Markup involves adding products that were initially unrelated to the present product line.

False

Online training is not being adopted by many companies because of the long-term costs associated with this learning method.

False

Marketing activities that include the use of coupons, trading stamps, and samples that stimulate buyer purchasing and dealer effectiveness is incorporated in _____.

Consumer Promotion

Job descriptions should be inflexible in very small firms to give the owner more freedom in assigning work to available employees.

False

Leadership and management are synonymous.

False

_____ is the effective physical movement of a product from the production line to the final consumer.

Distribution

Leased manpower is a source of permanent employees

False

Market segmentation simulates the conditions under which a product is to be marketed.

False

A marketing mix consists of uncontrollable variables that a firm combines to satisfy its target market

False

A uniform marketing strategy is recommended for people of all age groups as it proves to be very beneficial.

False

Choosing and maintaining a target market is easy because consumer characteristics are always stable.

False

Competition becomes more aggressive during the decline stage of a product's life cycle as prices and profits are on a decline.

False

Counseling is not needed when an employee must be terminated

False

Counseling means assigning responsibility to subordinates for doing certain activities, giving them the authority to carry out the duties, and letting them take care of the details of how the job is done.

False

Employees are not a good source of information about customer preferences as they are usually just trying to sell a product.

False

If a business is small and unincorporated, a tight, formal organization structure encourages creativity and reduces initiative.

False

In a line organization, staff is hired to advise and perform services for those doing the operations, financing, and selling.

False

____ advertising tries to get potential customers to buy a product within a short period of time so that the reaction can be easily measured.

Immediate-response

_____ advertising tries to get potential customers to buy a product within a short period of time so that the reaction can be easily measured.

Immediate-response

_____ are long, usually half-hour TV ads that can be effective in helping small firms keep growing and enter markets once dominated by giant competitors

Infomercials

_____ are long, usually half-hour TV ads that can be effective in helping small firms keep growing and enter markets once dominated by giant competitors.

Infromercials

_____ are those institutions in the channel of distribution that either take title to or negotiate the sale of a product.

Intermediaries

____ is the use of a combination of truck, rail, or ship to transport goods

Intermodal Shipping

Identify a true statement about institutional advertising.

It is selling an idea about the company to consumers

Which of the following is a risk for small firms interested in global operations?

Low skill levels of workers in underdeveloped countries

In the context of small businesses, which of the following statements is true of selling products to different ethnic groups?

Most ethnic groups constitute a better market for durable goods than traditional markets.

_____ are intermediaries who buy designer labels of clothing and sell them at less than typical retail prices.

Off-price retailers

Which of the following statements is true of exporting by small American firms?

Overseas markets represent unlimited sales opportunities.

Which of the following statements is true of selling merchandise in today's world?

Personal selling is one activity where small firms, particularly retailers, can compete with larger competitors—and win.

Which mode of transportation has the disadvantage of operating on fixed routes and on a fixed schedule?

Railroads

An electronics store provides discount coupons to its customers when they buy a product. Which marketing activity, other than advertising, does this situation illustrate?

Sales Promotion

Which of the following is the last step in the creative selling process?

Sales follow-up

_____ take actual physical possession of goods and then market them to other channel members, or industrial users.

Wholesalers

The absolute cost of an advertising media is the:

actual expenditure of running an advertisement.

A(n) _____ consists of the various marketing organizations involved in moving the flow of goods and services from a producer to a user.

distribution channel

With the _____ method, advertising costs have a consistent relationship to a firm's sales volume and/or profit level.

percentage of sales or profits

An exhibition of products or services by companies in the same industry is known as a _____.

trade show

The _____ method of setting an advertising budget is useful for specialty goods and in situations where outside factors limit the amount of product available.

units of sales